The market value of West Kensington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold properties in West Kensington with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a freeholder in West Kensington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Kensington valuers.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom flat in West Kensington, Jodie initiated the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was finalised in May 2008. The landlord’s costs were restricted to about 550 GBP.
Ms L Díaz completed a first floor flat in West Kensington in April 2008. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical premises in West Kensington with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed monthly. The lease concluded in 2094. Considering the 68 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
An example of a Lease Extension case for a West Kensington property is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The unexpired residue of the current lease was 37.79 years.